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Author: gameguru Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 51  
Subject: Tom Jacobs and Morningstar on ES Date: 7/9/2012 1:28 PM
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Since no one seems to have linked to this yet, here are Tom Jacob's public comments on ES from June:

http://www.fool.com/investing/general/2012/06/14/span-langen...

Back in September 2011, ES was the "come-on" stock for Special Ops, trading then at around $3.25/share. For better or worse, this will be a reputational stock for TJ. I have no idea what he recommended to subscribers, but this sounds like a "double-down" call if you have the risk tolerance.

I'm glad I ignored the marketing on this one, but did put it on my radar and at this price it is starting to look interesting to me. Take a look at the TMF Energy Map for North America:
http://www.fool.com/investing/general/2012/07/06/duffymap.as...

Nuclear isn't going away anytime soon (despite Germany's policy) and there will be plenty of opportunities for the waste-handlers. The big question is whether ES will survive to be one of the prominent players.

For a more dour take on the situation, see Morningstar, who now says ES has No Moat:
http://news.morningstar.com/articlenet/article.aspx?id=55828...

The key sentence for me is: "return on equity [has been] well below its estimated cost of equity over the past few years." If they can't get return above cost of equity, this will be a money-loser until they bury themselves. The Morningstar report strikes me as completely backwards-looking, whereas the key question is whether the new management has a plan and can execute to get that return/cost ratio going in the right direction.

Good hunting!
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